Should you invest in Airbnbvacation home rentals in Orlando? Most definitely!The Orlando real estate market is, by far, one of the best places to purchase anAirbnb investment property. While the same can be said for most Florida vacation rentals, it can be argued that vacation home rentals in Orlando are some of the best in The Sunshine State.
Related:The 7 Best Places to Buy a Vacation Home in Florida
So, why should you invest in Airbnb Orlando, how profitable are Airbnb vacation home rentals in Orlando, where should you invest in Orlando real estate for Airbnb, andis Airbnb legalin Orlando? This blog will answer these four questions clearly and completely.
Is Airbnb Legalin Orlando?
Let’s start with the most fundamental question, is Airbnb legal in the Orlando real estate market? The answer is a resoundingyes! The city has been open to Airbnb investing for some time and has also added recent Airbnb regulations that ease operating an Airbnbvacation rental property.In February 2018, the city passed an ordinance that allows Airbnb hosts to rent out their short-term rentals for fewer than 30 days. TheseAirbnb regulationsalso require the host to live on the rental property. Despite these regulations, Airbnbvacation rental investingmay not be allowed in some areas due to zoning and homeowner associations. This, however, is the only concerning issue with Airbnb Orlando, and it is easily avoidable if the host does research before investing in the property. To learn more about the legal requirements of Airbnb Orlando, visitAirbnb’s Orlando regulations guide.
Why Should You Invest in Airbnb Orlando?
Next up, why should you invest in Airbnb vacation home rentals in Orlando? There are two main reasons: Florida’s wonderful sunshine and the world’s most famous rodent.
Orlando’s tourism is top-notch, especially because of the two aforementioned factors: Florida’s beaches and Disney World. Orlando’s unbelievable tourism statistics back this up. In 2015, Orlando was the first and only city in the world with 60 million tourists visiting it. New York City did not reach this number until two years later. Most recently, in 2017, Orlando beat its record once again when a whopping68 million people visited Orlando. Airbnbvacation rental investmentsclearly benefit from these massive waves of tourists. Just later that year,about 215,000 people were guestsin Airbnb vacation home rentals in Orlando.
How Profitable Are Airbnb Vacation Home Rentals in Orlando?
The next question we have to tackle is how profitable are Airbnb vacation home rentals in Orlando. According to Mashvisor’s investment property calculator, the answer isveryprofitable, with the averageAirbnb investment propertygenerating $1,156 in rental income. Here’s the Airbnb Orlando real estate data according to Mashvisor. To learn about our investment property calculator,click here!
Related:Buying Rental Property Calculator: The First Thing to Do in Real Estate Investing
Median Property Price: $343,663
Rental Income: $1,156
Cap Rate / Cash on Cash Return: 1.46%
Where to Invest in Airbnb Orlando Real Estate
One question remains unanswered: where should you buy Airbnbvacation home rentals in Orlando? Once again, Mashvisor has the answer. According to Mashvisor’s real estate market analysis, the best neighborhoods to buy anAirbnb investment propertyin Orlando areDelaney Park,Millenia,Florida Center North,Florida Center,Lake Eola Heights,Thornton Park, andCentral Business District.
Median Property Price: $509,300
Rental Income: $3,037
Cap Rate / Cash on Cash Return: 2.02%
Occupancy Rate: 68%
Delaney Park is the Orlando neighborhood with the highest average Airbnb rental income. It’s safe to say that Airbnb hosts in this area aremaking money in real estate.
Median Property Price: $79,000
Rental Income: $1,882
Cap Rate / Cash on Cash Return: 8.76%
Occupancy Rate: 59%
Millenia’s median property price is the lowest in Orlando, and the only one under $100,000. This low price, coupled with its high Airbnb rental income, help it generate the highest return on investment in Orlando real estate. Without a doubt, this ROI is also one of the highest in the entireFlorida real estate market.
Median Property Price: $223,641
Rental Income: $2,073
Cap Rate / Cash on Cash Return: 3.17%
Occupancy Rate: 57%
Is Airbnb a good investmentin Florida Center North? According to Mashvisor’s data, absolutely! It is one of only three neighborhoods in Orlando with over $2,000 in Airbnb rental income.
Median Property Price: $374,271
Rental Income: $1,927
Cap Rate / Cash on Cash Return: 1.73%
While Florida Center does not quite match up with Florida Center North, it is surprisingly close. It may have a more expensive median property price, but its Airbnb rental income is not too far off from that of its northern neighbor.
Median Property Price: $569,950
Rental Income: $2,381
Cap Rate / Cash on Cash Return: 1.55%
Occupancy Rate: 60%
Lake Eola Heights is one of the best places to buy Airbnb vacation home rentals in Orlando. Despite their above-average property price, investment properties in this area generate high Airbnb rental income and are consistently occupied by guests.
Median Property Price: $448,330
Rental Income: $1,899
Cap Rate / Cash on Cash Return: 0.79%
Occupancy Rate: 62%
